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Testimonials
“We are extremely satisfied with the level of service and professionalism combined with a friendly attitude of all the staff we spoke to, and would like to thank everyone at Harrington Brooks very much.”
Mr and Mrs B, Liverpool
“We were really pleased with the efficient way that Harrington Brooks handled our enquiry and by the speed in which our mortgage was finalised.”
Mr and Mrs S, Birmingham
“I found the staff at Harrington Brooks were all very polite, helpful and understanding. I couldn’t fault the level of service we received from start to finish.”
Mr J, Warrington
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Is applying for an IVA a good idea?
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An IVA could improve your life in five years' time
The eighties saw the start of the Individual Voluntary Arrangement Plans that we now know. Those with unsecured debts of more than £15,000 often apply for an Individual Voluntary Arrangement Plan (IVA), or a PTD in Scotland. This plan is one of only two debt solutions that can write off part of your debt - bankruptcy is the second option.
If 75% of creditors agree to the IVA proposal, it becomes legally binding. Interest on the debts is frozen and the debtor may not apply for more credit elsewhere. Unpaid debts at the end of this 60-month term are written off. Creditors may not make any claims against assets after the IVA has been agreed upon.
This agreement depends on having monthly repayments made as set out in the IVA agreement. This will ensure that creditors can take no further legal action against the debtor.
An IVA is a legally binding agreement; therefore you must be confident that you can afford repayments. The insolvency practitioner will determine what amount the debtor can afford to repay each month.
Who may apply for an IVA?
Not everyone needs to apply for an IVA; for most, a debt management plan will be fine. If, however, you have more than £20,000 in debt it may be good to apply for an IVA.
What happens if I miss a repayment?
Missing one or two payments should not be a problem; however, missing many payments will be. This could lead to bankruptcy proceedings. But mostly the creditors will sell the debt to a debt collection company, which means you will pay much more than the original debt.
May I keep my assets?
Your assets are mostly safe from repossession but the creditors may expect homeowners to remortgage their property to pay off the debt.
Is an IVA similar to bankruptcy?
An IVA is not similar to bankruptcy. Bankruptcy compels the debtor to sell off assets; IVAs use ongoing income to pay off debts and debtors keep their assets. IVAs are not advertised in the local press and they do not prohibit you from employment in certain industries.
What if my finances change during this period?
Keep your creditors informed about your finances: let them know about the good as well as the bad. This allows them to change the agreement.
| Contact us now for further information and no-obligation help on 0800 0481 764 |
